Class 4 Regulatory Proposals
Presentation on the Class 4 regulatory proposals to regional forums
Joanna Gould, Jayne Beggs and Ben Goodchild
Policy Group
Department of Internal Affairs
Introduction: Minister’s priorities
• The Minister of Internal Affairs has several priorities for Class 4 gambling:• Increasing the proportion of funding the community receives• Delivering more funding to the community where the
proceeds were generated• Lowering compliance costs• Increasing transparency and compliance• Enhancing protections for problem gamblers
Hon Chris Tremain
Department of Internal Affairs
The four proposals
• Transparency of grant-making decisions
• Increasing the minimum rate of return
• Localised return of proceeds
• Venue payment systems
Department of Internal Affairs
Consultation process
• Submissions are open until 25 October 2013
• All proposals in the consultation document are open for discussion
• DIA needs to know how the proposals will affect you and in what way
• Cabinet approval is required for decisions on any new policy before regulations are made
• We want to hear from you!
Department of Internal Affairs
Transparency of grant-making
• What’s the problem?• Information about grants made is not always clear
or comprehensive
• What’s the objective?• To increase the transparency of Class 4 grant-
making decisions
• Proposed solution• Introduce new regulatory requirements for
societies to publish particular information
Department of Internal Affairs
Transparency of grant-making (cont.)• What type of information?
• Geographic location of applicants• Whether the applicant is national, regional or local• Purpose of the grant• Geographic area where the funding will be used• Amount sought by the applicant• Amount granted (or not) if the applicant was
successful or unsuccessful
• Newspaper vs. website
Department of Internal Affairs
Questions? Comments?
Department of Internal Affairs
Increasing the minimum rate of return• What’s the problem?
• Large variability in current return rates, suggests that overall there could be an improvement
• What’s the objective?• To deliver an increased rate of return to the
community through Class 4 gambling
• Proposed solution• Increase the rate of return from 37.12% to at least
40% and possibly higher
Department of Internal Affairs
Increasing the minimum rate of return (cont.)• We are considering rates of between 40% and
43%
• There could be a one-off increase or an incremental increase
• If changes are made to the current rate of return, new return rates would be in place for the first financial year commencing after the regulations come into force (different for each society)
Department of Internal Affairs
Questions? Comments?
Department of Internal Affairs
Localised return of gambling proceeds
• What’s the problem?• Money returned to particular areas can be
disproportionately low compared to the amount spent on the gaming machines in those areas
• What’s the objective?• Balance the potential harm that can come from gambling
against the benefit of returning proceeds to the areas that generated the proceeds
• Proposed solution• Define both what “local” return means and the rate of
local return
Department of Internal Affairs
Localised return: two key questions• What does “local return mean?
- Territorial Authority district, region or something else?
• How much should be returned “locally”?
- 60%, 70%, 80% or more?
Department of Internal Affairs
Districts and regions
Department of Internal Affairs
Questions? Comments?
Department of Internal Affairs
Venue payments system
• What’s the problem?• Venue cost schedules are time consuming,
cumbersome and costly to administer
• What’s the objective?• To maximise the money available to be returned to
community by developing a more efficient venue compensation model
Department of Internal Affairs
Venue payment system (cont.)
• Proposed options• Review the Gazette notice
• Fixed payment per machine
Number of gaming machines
Per machine, per week payment ranges ($ ex GST)
Main Urban 10 – 181 – 9
95 – 20080 – 200
Other Urban 10 – 181 – 9
55 – 17080 – 170
Rural 10 – 181 – 9
95 – 15085 – 150
Department of Internal Affairs
Venue payment system (cont.)
• Commission-based payment system
Gaming Machine Proceeds (ex GST) per week
$1-$1750 $1751-$3500
$3501-$8700
$8701-$15,550
$15,551-$30,000
$30,001+
% of GMP payments
40% 23% 12.5% 10% 8% 0%
Department of Internal Affairs
Questions? Comments?
Department of Internal Affairs
Next steps
• How to submit• If you want to make a submission on any or all of
these proposals, you can email your input to [email protected]
• The submission period closes on 25 October 2013
• Any further questions?